parola d'ordine: l'inflazione non fa più paura
U.S. Treasuries climb as inflation worries wane
Thu Aug 17, 2006
By Chris Reese
NEW YORK, Aug 17 (Reuters) - U.S. Treasury debt prices rose for the third day on Thursday, taking benchmark yields to fresh four-month lows, on investor optimism that the Federal Reserve has little cause to raise interest rates following a spate of tame inflation readings.
Yield on the benchmark note had fallen as much as 16 basis points since Monday, following July data showing the price of goods leaving U.S. factory gates unexpectedly fell and consumer prices rose at a slower pace.
Prices on the 10-year note, which move inversely to yields, have had their best three-day run in nearly a year, which traders said was spurred by increased expectations the Fed will not have to raise interest rates in September to stifle price increases.
"It is more technical this morning," said George Goncalves, Treasury and agency trading strategist with Banc of America Securities in New York. After this week's key inflation reports and with little data on Thursday, "for the time being there is not much to suppress or hold prices down -- it is pretty much a follow-on from yesterday."
Signs that price pressures are easing are a boon to bonds in two ways. In addition to making it more likely the Fed will extend its pause in rate hikes, slowing inflation helps to preserve a bond's value over time.
The 10-year note <US10YT>_was trading 3/32 higher in price as of early on Thursday for a yield of 4.85 percent from a yield of 4.87 percent late on Wednesday.
Easing inflation pressures took on some of the tone of a global phenomenon on Thursday with a report showing tamer-than-expected consumer prices in the euro zone which helped push euro zone government bond prices higher.